China Approaches Freeport Indonesia To Build A Copper Smelter In Halmahera

Illustration. (Photo: Doc. Freeport Indonesia)

JAKARTA - PT Freeport Indonesia (PTFI) admits that it is being approached by a Chinese company, Tsingshan Steel, which wants to partner to build a copper smelter in Halmahera, although until now there has been no agreement between the two parties.

"On the one hand, it is true that we were approached (approached) by Tsingshan who also wished to build a copper smelter in Halmahera and we are still in the discussion stage," said PTFI President Director Tony Wenas during a hearing with Commission VII DPR RI in Jakarta. , quoted from Antara, Tuesday, December 8.

According to Tony, there has not been any agreement between PTFI and Tsingshan. Discussions between the two are still in the early stages covering the methods to be used, smelter capacity, construction schedules and operational targets.

He is very open about the offer to build a copper smelter in Indonesia, especially if it is cheaper and faster than the company plans.

"Basically we are very open to anyone who wants to build a copper smelter in Indonesia, can it be cheaper than us or faster than us, of course we are open to partnering with them. But it is still in the discussion stage with Tsingshan," he said.

On the other hand, continued Tony, the progress of the construction of the Freeport smelter in Gresik, East Java, continues. Last week his party had conducted piling tests at 16 points.

Meanwhile, President Director of MIND ID Mining Holding Orias Petrus Moedak supports the option implemented by Freeport. This is because the Freeport smelter project investment is also borne by MIND ID as Freeport's shareholder.

"Our position contributes to the capex and this has an impact on us. We support if there is an expenditure for the smelter that is smaller than the initial calculation," he said.

Orias said that with the initial calculation of the smelter investment of US $ 3 billion, MIND ID will bear around US $ 1.2 billion to US $ 1.5 billion.

"This is significant for MIND ID. Of course we are considering another option and the latest with Tsingshan where the contribution will be much smaller than the original plan," he said.

Although he wants an agreement in the talks between Freeport Indonesia and Tsingshan, Orias said that it seems that it cannot be decided in the near future.

"We want to move fast but we also understand in the near future that with this Tsingshan we will face it twice in the new year, now February (Imlek) which will have an impact on how quickly important decisions are taken," said Orias.